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Companies hope for government help in difficult 2009
The government should boost domestic consumption and offer tax breaks to help firms overcome challenges posed by the global economic recession, business executives said at a conference in Hanoi Tuesday.
Le Van Chung, chairman of the Vietnam Cement Corporation, and Dau Van Hung, general director of the Vietnam Steel Corporation, said plans to boost consumption should be in place by early 2009.
Plans on tax breaks for small- and medium-sized enterprises should be spelled out, they said.
Deputy General Director of the Vietnam National Textile and Garment Group, Le Tien Truong, said measures to boost consumption would help the textile and garment sector deal with difficulties like job cuts, pointing out that 300,000 out of two million workers in the sector could lose their jobs because of a fall in exports triggered by the global economic slowdown.
Firms have also asked the government to slash taxes and simplify tax and customs procedures, Truong said. They want import tax on synthetic fiber, currently at 3 percent, to be eliminated, he said.
General Director of the Vietnam National Petroleum Corporation (Petrolimex), Bui Ngoc Bao, said the government should cap retail prices of petroleum products but allow the firms to fix prices themselves.
Company executives also urged the government to temporarily stop some new production establishments from spending more money.
Chung said since cement demand is expected to fall amid the economic slowdown, new cement factories should not be built.
More than 10 cement plants with a combined capacity of over 10 million tons are expected to come into operation in 2009.
The country’s cement capacity is estimated to rise to 100 million tons by 2012 while demand would only be 84- 85 million tons in 2020, he said, adding that it is very difficult to export cement.
Businesses also urged the government to help them access credit and technologies.
Bao Van
Thanhnien
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